Moody's reviews UFC for upgrade

Moody's Investors Service said it placed UFC Holdings, LLC's ratings under review for upgrade, including the B2 corporate family rating, B2-PD probability of default rating and B2 senior secured rating. The outlook was changed to rating under review from stable.

The review follows Monday’s announcement that UFC’s parent Endeavor Group agreed with World Wrestling Entertainment Inc. to combine WWE with the unit. Endeavor will get a 51% stake in the new company.

"The enhanced scale arising from the combination should result in higher operating leverage and greater business diversity from a broad portfolio of live sports and entertainment programming," said Emile El Nems, a Moody's vice president and senior credit officer, in a press release. "The combination of WWE and UFC will create an entity with a larger devoted fan base providing Endeavor the ability to maximize the value of its media rights and sponsorships."

The review will consider the final post-transaction capital structure and assess the risks, macroeconomic conditions, cash generation and deleveraging capacity as well as governance considerations, including the trajectory of the company's financial policies and M&A strategy, the agency said.

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